Impact Sourcing in Africa
Did you know that by 2035, Africa’s working-age population is projected to increase by 450 million individuals? Unfortunately, without effective policy change, only around 100 million jobs will be available, as highlighted in the World Bank Group’s Africa Competitiveness Report 2017.
This brings us to a critical challenge facing Africa’s future workforce and the transformative potential of impact sourcing in Africa. In today’s interconnected world, business strategies like outsourcing, insourcing, and offshoring have become integral to companies looking to optimize their operations and reduce costs. However, a new concept called “impact sourcing” has emerged in recent years, and we aim to explore its potential in Africa, along with the differences between outsourcing, insourcing, and offshoring.
Outsourcing refers to the practice of contracting specific functions or processes of a business to external service providers. It allows companies to focus on their core competencies while delegating non-core activities to specialized and often cost-effective third-party vendors.
Insourcing, on the other hand, involves bringing external functions or processes back in-house. This decision is typically made when a company believes it can handle those activities internally more efficiently or when it wants to retain direct control over sensitive operations.
Offshoring is the relocation of business functions or processes to a different country, often to reduce costs. This practice takes advantage of lower labor and operational expenses in countries where wages and operational costs are comparatively lower than in the home country.
Finally, impact sourcing, also known as socially responsible outsourcing, takes the concept of outsourcing a step further by prioritizing social, environmental, and economic impact. By providing jobs to disadvantaged individuals or communities, companies can positively impact society while also benefiting from cost-effective labor.
Impact sourcing can create job opportunities for marginalized individuals, providing them with valuable skills and a stable income, which leads to poverty reduction. Programs focus on technical skills and soft skills, such as communication, teamwork, and problem-solving, contributing to overall capacity building within the community.
Socially responsible outsourcing promotes social inclusion and diversity, ethical business practices, fair wages, and safe working conditions, leading to sustainable development and positively impacting the providers and communities they serve.
Simba Talents Group plays a significant role in impact-sourcing the African continent. It comprises top graduates from the finest universities across Africa, who are well-equipped to empower the continent’s workforce. Simba selects highly skilled individuals who are trained in computer software and application development, website development, research, due diligence, and virtual assistance. Simba not only outsources projects globally but also actively hires African talent, which contributes to economic development and empowers the youth through employment opportunities